Chairman and Chief Executive Officer Jeff Bewkes said: "We had a strong
third quarter, which keeps us on track to exceed our original 2016
outlook and underscores our leadership in creating and distributing the
very best content. In television, HBO took home more Primetime Emmy
Awards than any other network for the 15th consecutive year
and Time Warners divisions won a total of 40 Emmys, more than any other
company. CNNs standout election coverage made it the #1 news network in
primetime among adults 18-49 for the fourth consecutive quarter and
Turners momentum doesnt stop there. Year-to-date, TBS, TNT and Adult
Swim are three of the top five ad-supported cable networks in primetime
among adults 18-49. In film, Warner Bros. had a strong quarter led by Suicide
Squad and has the #1 release of the fall in Sully, while
anticipation is off the charts for J.K. Rowlings Fantastic Beasts
and Where to Find Them, which hits the big screen on November 18."

Mr. Bewkes continued: "The agreement we announced on October 22 to be
acquired by AT&T Inc. represents a great outcome for our shareholders
and an excellent opportunity to drive long-term value well into the
future. Combining with AT&T is the natural next step in the evolution of
our business and allows us to significantly accelerate our most
important strategies."

Company Results

Revenues grew 9% to $7.2 billion, Operating Income increased 10% to $2.0
billion and Adjusted Operating Income increased 12% to $2.1 billion due
to increases at all operating divisions and lower intercompany
eliminations. Revenues included the unfavorable impact of foreign
exchange rates of approximately $55 million in the quarter.

The Company posted Diluted Income per Common Share from Continuing
Operations ("EPS") of $1.87 compared to $1.26 for the prior year
quarter. Adjusted Diluted Income per Common Share from Continuing
Operations ("Adjusted EPS") was $1.83 versus $1.25 for the
prior year quarter. EPS and Adjusted EPS included a net tax benefit of
$0.28 related to an Internal Revenue Service ("IRS")-approved tax
accounting method change.

Refer to "Use of Non-GAAP Financial Measures" in this release for a
discussion of the non-GAAP financial measures used in this release and
the reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures.

Stock Repurchase Program Update

From January 1, 2016 through October 21, 2016, the Company repurchased
approximately 31 million shares of common stock for approximately $2.3
billion. These amounts reflect the purchase of approximately 8 million
shares of common stock for approximately $660 million since the amounts
reported in the Companys second quarter earnings release on August 3,
2016.

Segment Performance

The schedule below reflects Time Warners financial performance for the
three and nine months ended September 30, by line of business (millions).

Presented below is a discussion of the performance of Time Warners
segments for the third quarter of 2016. Unless otherwise noted, the
dollar amounts in parentheses represent year-over-year changes.

TURNER

Revenues increased 9% ($212 million) to $2.6 billion, due to
increases of 12% ($163 million) in Subscription revenues, 33% ($33
million) in Content and other revenues, and 2% ($16 million) in
Advertising revenues. Subscription revenues increased due to higher
domestic rates and growth at Turners international networks, partially
offset by the impact of lower domestic subscribers and foreign exchange
rates. Advertising revenues benefited from growth at Turners
domestic news business, partially offset by lower delivery at certain
domestic entertainment networks. International advertising was
essentially flat with local currency growth offset by the impact of
foreign exchange rates. Content and other revenues increased due to
higher international licensing revenues.

Operating Income increased 8% ($90 million) to $1.2 billion. The
growth in revenues more than offset higher expenses, including
programming costs, which grew 5% primarily due to increases at Turners
news business related to its coverage of the 2016 U.S. Presidential
Election.

Adjusted Operating Income increased 12% ($132 million) to $1.2
billion. Adjusted Operating Income for the current year quarter excludes
a $25 million asset impairment.

In September, Turner received 10 Primetime Emmy Awards and CNN received
four News & Documentary Emmy Awards. CNNs coverage of the second U.S.
Presidential debate was its most watched general election debate ever
and it was the #1 cable network in total viewers and among adults 25-54.
Last week, viewership of TNTs NBA Opening Night doubleheader increased
8%. Year-to-date through the third quarter, Turner had three of the top
five ad-supported cable networks in primetime among adults 18-49 with
TBS, TNT and Adult Swim ranking #1, #4 and #5, respectively. During the
third quarter of 2016, Adult Swim was the #1 ad-supported cable network
in primetime and total day among adults 18-34. CNN was also the #1 news
network among adults 18-49 in primetime for the fourth consecutive
quarter, had its most-watched quarter in eight years among total viewers
and adults 25-54, and was the #1 digital news destination in mobile and
multiplatform unique visitors and in video starts.

HOME BOX OFFICE

Revenues increased 4% ($59 million) to $1.4 billion, due to an
increase of 5% ($62 million) in Subscription revenues, partially offset
by a decline of 2% ($3 million) in Content and other revenues.
Subscription revenues increased due to higher domestic rates and
international growth. The decrease in Content and other revenues was due
to lower domestic licensing revenues, partially offset by higher
international licensing revenues.

Operating Income and Adjusted Operating Income both
increased 2% ($11 million) to $530 million, as the growth in revenues
more than offset higher expenses. Programming costs grew 15% reflecting
higher acquired theatrical programming expenses due to the timing of
availabilities and increased expenses for original series.

In September, HBO received 22 Primetime Emmy Awards, the most of any
network for the 15th consecutive year, including Outstanding
Drama Series for Game of Thrones, Outstanding Comedy
Series for Veep and Outstanding Variety Talk Series for Last
Week Tonight with John Oliver. Game of Thrones received 12
awards and is now the most awarded scripted show ever with a cumulative
38 Primetime Emmy Awards. The premiere episode of Westworld
has totaled more than 13 million viewers, putting it ahead of
the premieres of True Detective and Game of Thrones after
a similar period of time. HBO and Cinemax recently launched on Sonys
PlayStation Vue and HBO NOW recently launched on Sonys PlayStation
platforms.

WARNER BROS.

Revenues increased 7% ($212 million) to $3.4 billion, primarily
due to higher theatrical revenues partially offset by lower videogames
revenues. Theatrical revenues increased due to the box office releases
of Suicide Squad, The Legend of Tarzan, Sully and Lights
Out. Videogames revenues declined due to the comparison to the
launch of LEGO Dimensions and carryover revenues from Mortal
Kombat X in the prior year quarter.

Operating Income increased 11% ($43 million) to $428 million, due
to the increase in revenues, partially offset by higher costs of
revenues associated with the mix of film releases.

In September, Warner Bros. received eight Primetime Emmy Awards. For the
2016-2017 television season, Warner Bros. is producing 33 shows across
the broadcast networks, including, season-to-date among adults 18-49,
the #1 show, The Big Bang Theory and the #1 unscripted series, The
Voice. Through October 31, Suicide Squad
grossed nearly $750 million at the global box office.

CONSOLIDATED NET INCOME AND PER SHARE RESULTS

Third-Quarter Results

For the three months ended September 30, 2016, the Company had Income
from Continuing Operations attributable to Time Warner Inc. shareholders
of $1.5 billion and EPS of $1.87. This compares to Income from
Continuing Operations attributable to Time Warner Inc. shareholders for
the third quarter of 2015 of $1.0 billion and EPS of $1.26. The increase
in EPS primarily reflects the increase in Operating Income, a lower
effective tax rate primarily due to the benefit from an IRS-approved tax
accounting method change and fewer shares outstanding.

Adjusted EPS was $1.83 for the three months ended September 30,
2016, compared to $1.25 for last years third quarter.

For the third quarters of 2016 and 2015, the Company had Net Income
attributable to Time Warner Inc. shareholders of $1.5 billion and $1.0
billion, respectively.

USE OF NON-GAAP FINANCIAL MEASURES

The Company utilizes Adjusted Operating Income (Loss), Adjusted
Operating Income margin and Adjusted EPS, among other measures, to
evaluate the performance of its businesses. These measures are
considered important indicators of the operational strength of the
Companys businesses. Some limitations of Adjusted Operating Income
(Loss), Adjusted Operating Income margin and Adjusted EPS are that they
do not reflect certain charges that affect the operating results of the
Companys businesses and they involve judgment as to whether items
affect fundamental operating performance.

Adjusted Operating Income (Loss) is Operating Income (Loss) excluding
the impact of noncash impairments of goodwill, intangible and fixed
assets; gains and losses on operating assets (other than deferred gains
on sale-leasebacks); gains and losses recognized in connection with
pension and other postretirement benefit plan curtailments or
settlements; external costs related to mergers, acquisitions or
dispositions (including restructuring and severance costs associated
with dispositions), as well as contingent consideration related to such
transactions, to the extent such costs are expensed; amounts related to
securities litigation and government investigations; and the foreign
currency losses during the three months ended December 31, 2014 and
March 31, 2015, related to the translation of net monetary assets
denominated in Venezuelan currency resulting from the Companys change
to the SICAD 2 exchange rate beginning December 31, 2014 and the Simadi
exchange rate during the quarter ended March 31, 2015, respectively.
Adjusted Operating Income margin is defined as Adjusted Operating Income
divided by Revenues.

Beginning with periods ending on or after October 1, 2016, Adjusted
Operating Income (Loss) will be defined as Operating Income (Loss)
excluding the impact of noncash impairments of goodwill, intangible and
fixed assets; gains and losses on operating assets (other than deferred
gains on sale-leasebacks); gains and losses recognized in connection
with pension and other postretirement benefit plan curtailments or
settlements; costs related to the pending acquisition by AT&T Inc.
(including retention, restructuring and severance costs associated with
the transaction); external costs related to mergers, acquisitions or
dispositions (including restructuring and severance costs associated
with dispositions), as well as contingent consideration related to such
transactions, to the extent such costs are expensed; amounts related to
securities litigation and government investigations; and the foreign
currency losses during the three months ended December 31, 2014 and
March 31, 2015 related to the translation of net monetary assets
denominated in Venezuelan currency resulting from the Companys change
to the SICAD 2 exchange rate beginning December 31, 2014 and the Simadi
exchange rate during the quarter ended March 31, 2015, respectively.

Adjusted EPS is Diluted Income per Common Share from Continuing
Operations attributable to Time Warner Inc. common shareholders with the
following items excluded from Income from Continuing Operations
attributable to Time Warner Inc. common shareholders: noncash
impairments of goodwill, intangible and fixed assets and investments;
gains and losses on operating assets (other than deferred gains on
sale-leasebacks), liabilities (including extinguishments of debt) and
investments, in each case including associated costs of the transaction;
gains and losses recognized in connection with pension and other
postretirement benefit plan curtailments or settlements; external costs
related to mergers, acquisitions, investments or dispositions (including
restructuring and severance costs associated with dispositions), as well
as contingent consideration related to such transactions, to the extent
such costs are expensed; amounts related to securities litigation and
government investigations; the foreign currency losses during the three
months ended December 31, 2014 and March 31, 2015 related to the
translation of net monetary assets denominated in Venezuelan currency
resulting from the Companys change to the SICAD 2 exchange rate
beginning December 31, 2014 and the Simadi exchange rate during the
quarter ended March 31, 2015, respectively; and amounts attributable to
businesses classified as discontinued operations; as well as the impact
of taxes and noncontrolling interests on the above items and the
Companys share of the above items with respect to equity method
investments. Adjusted EPS is considered an important indicator of the
operational strength of the Companys businesses as this measure
eliminates amounts that do not reflect the fundamental performance of
the Companys businesses. The Company utilizes Adjusted EPS, among other
measures, to evaluate the performance of its businesses both on an
absolute basis and relative to its peers and the broader market. Many
investors also use an adjusted EPS measure as a common basis for
comparing the performance of different companies.

Beginning with periods ending on or after October 1, 2016, Adjusted EPS
will be Diluted Income per Common Share from Continuing Operations
attributable to Time Warner Inc. common shareholders with the following
items excluded from Income from Continuing Operations attributable to
Time Warner Inc. common shareholders: noncash impairments of goodwill,
intangible and fixed assets and investments; gains and losses on
operating assets (other than deferred gains on sale-leasebacks),
liabilities (including extinguishments of debt) and investments, in each
case including associated costs of the transaction; gains and losses
recognized in connection with pension and other postretirement benefit
plan curtailments or settlements; costs related to the pending
acquisition by AT&T Inc. (including retention, restructuring and
severance costs associated with the transaction); external costs related
to mergers, acquisitions, investments or dispositions (including
restructuring and severance costs associated with dispositions), as well
as contingent consideration related to such transactions, to the extent
such costs are expensed; amounts related to securities litigation and
government investigations; the foreign currency losses during the three
months ended December 31, 2014 and March 31, 2015 related to the
translation of net monetary assets denominated in Venezuelan currency
resulting from the Companys change to the SICAD 2 exchange rate
beginning December 31, 2014 and the Simadi exchange rate during the
quarter ended March 31, 2015, respectively; and amounts attributable to
businesses classified as discontinued operations; as well as the impact
of taxes and noncontrolling interests on the above items and the
Companys share of the above items with respect to equity method
investments.

Free Cash Flow is defined as Cash Provided by Operations from Continuing
Operations plus payments related to securities litigation and government
investigations (net of any insurance recoveries), external costs related
to mergers, acquisitions, investments or dispositions (including
restructuring and severance costs associated with dispositions), to the
extent such costs are expensed, contingent consideration payments made
in connection with acquisitions, and excess tax benefits from equity
instruments, less capital expenditures, principal payments on capital
leases and partnership distributions, if any. The Company uses Free Cash
Flow to evaluate the performance and liquidity of its businesses and
considers Free Cash Flow when making decisions regarding strategic
investments, dividends and share repurchases. The Company believes Free
Cash Flow provides useful information to investors because it is an
important indicator of the Companys liquidity, including its ability to
reduce net debt, make strategic investments, pay dividends to common
shareholders and repurchase stock.

A general limitation of these measures is that they are not prepared in
accordance with U.S. generally accepted accounting principles and may
not be comparable to similarly titled measures of other companies due to
differences in methods of calculation and excluded items. Adjusted
Operating Income (Loss), Adjusted EPS and Free Cash Flow should be
considered in addition to, not as a substitute for, the Companys
Operating Income (Loss), Diluted Income per Common Share from Continuing
Operations and various cash flow measures (e.g., Cash Provided by
Operations from Continuing Operations), as well as other measures of
financial performance and liquidity reported in accordance with U.S.
generally accepted accounting principles.

ABOUT TIME WARNER INC.

Time Warner Inc., a global leader in media and entertainment with
businesses in television networks and film and TV entertainment, uses
its industry-leading operating scale and brands to create, package and
deliver high-quality content worldwide on a multi-platform basis.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
are based on managements current expectations or beliefs, and are
subject to uncertainty and changes in circumstances. Actual results may
vary materially from those expressed or implied by the statements herein
due to changes in economic, business, competitive, technological,
strategic and/or regulatory factors and other factors affecting the
operation of Time Warners businesses, including the pending merger with
AT&T Inc. More detailed information about these factors may be found in
filings by Time Warner with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q. Time Warner is under no obligation to,
and expressly disclaims any such obligation to, update or alter its
forward-looking statements, whether as a result of new information,
future events, or otherwise.

No Offer or Solicitation

This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. No offer of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.

Important Information and Where to Find It

In connection with the proposed transaction, AT&T will file with the SEC
a registration statement that includes a preliminary prospectus
regarding the transaction and Time Warner will file with the SEC a proxy
statement with respect to a special meeting of Time Warners
stockholders to approve the transaction. The definitive proxy
statement/prospectus will be mailed to the security holders of Time
Warner. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE
REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER
RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT TIME WARNER, AT&T AND THE TRANSACTION.

Investors and security holders will be able to obtain these materials,
when they are available, and other relevant documents filed with the SEC
free of charge at the SECs website, www.sec.gov.
Copies of documents filed with the SEC by Time Warner will be made
available free of charge on Time Warners investor
relations website. Copies of documents filed with the SEC by AT&T
will be made available free of charge on AT&Ts investor
relations website.

Certain Information Regarding Participants

Time Warner, AT&T and certain of their respective directors, executive
officers and other members of management and employees may be deemed to
be participants in the solicitation of proxies in respect of the
proposed transaction. Information regarding Time Warners directors and
executive officers is available in Time Warners Annual Report on Form
10-K for the year ended December 31, 2015, which was filed with the SEC
on February 25, 2016, and in its proxy statement for the 2016 Annual
Meeting which was filed with the SEC on April 29, 2016. To the extent
holdings of Time Warner securities have changed since the amounts
printed in the proxy statement for the 2016 Annual Meeting, such changes
have been or will be reflected on Statements of Change in Ownership on
Form 4 filed with the SEC. Information regarding AT&Ts directors and
executive officers is available in AT&Ts Annual Report on Form 10-K for
the year ended December 31, 2015, which was filed with the SEC on
February 18, 2016 and in its proxy statement for the 2016 Annual Meeting
which was filed with the SEC on March 11, 2016. To the extent holdings
of AT&Ts securities have changed since the amounts printed in the proxy
statement for the 2016 Annual Meeting, such changes have been or will be
reflected on Statements of Change in Ownership on Form 4 filed with the
SEC. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests,
by security holdings or otherwise, will be contained in the registration
statement and proxy statement/prospectus and other relevant materials to
be filed with the SEC when they become available. These documents will
be available free of charge from the sources indicated above.

Time Warner Inc. ("Time Warner" or the "Company") is a leading media and
entertainment company, whose businesses include television networks and
film and TV entertainment. Time Warner classifies its operations into
three reportable segments: Turner: consisting principally of
cable networks and digital media properties; Home Box Office:
consisting principally of premium pay television and over-the-top
("OTT") services domestically and premium pay, basic tier television and
OTT services internationally; and Warner Bros.: consisting
principally of television, feature film, home video and videogame
production and distribution.

On October 22, 2016, the Company entered into an Agreement and Plan of
Merger with AT&T Inc. ("AT&T") and West Merger Sub, Inc. pursuant to
which the Company will be acquired by AT&T for $107.50 per share, with
50% to be paid in cash and 50% in AT&T stock. The merger is subject to
Time Warner shareholder approval, regulatory approvals and customary
closing conditions. The merger is expected to close by the end of 2017.

Note 2. INTERSEGMENT TRANSACTIONS

Revenues recognized by Time Warners segments on intersegment
transactions are as follows (millions):

For the three months ended September 30, 2016, Discontinued operations,
net of tax was expense of $5 million ($0.01 of diluted loss from
discontinued operations per common share) related to pension settlement
charges related to businesses the Company previously disposed of. For
the nine months ended September 30, 2016, Discontinued operations, net
of tax was income of $35 million ($0.04 of diluted income from
discontinued operations per common share), which also included the
recognition of additional tax benefits associated with certain foreign
tax attributes of Warner Music Group ("WMG"), which the Company disposed
of in 2004.

For the nine months ended September 30, 2015, Discontinued operations,
net of tax was income of $37 million ($0.04 of diluted income from
discontinued operations per common share), primarily related to the
final resolution of a tax indemnification obligation associated with the
disposition of WMG.

Please see below for additional information on items affecting
comparability.
(a) Descriptions of the adjustments presented in the table follow the
reconciliations of Adjusted EPS to Diluted Income per Common Share
from Continuing Operations.
(b) Adjusted Operating Income margin is defined as Adjusted Operating
Income divided by Revenues. Operating Income margin is defined as
Operating Income divided by Revenues.

Please see below for additional information on items affecting
comparability.
(a) Descriptions of the adjustments presented in the table follow the
reconciliations of Adjusted EPS to Diluted Income per Common Share
from Continuing Operations.
(b) Adjusted Operating Income margin is defined as Adjusted Operating
Income divided by Revenues. Operating Income margin is defined as
Operating Income divided by Revenues.

During the three and nine months ended September 30, 2016, the Company
recognized asset impairments of $30 million and $35 million,
respectively, which consisted of $25 million at Turner for both periods
relating to an international broadcast license, $5 million and $6
million, respectively, at Warner Bros. relating to certain internally
developed software and, for the nine months ended September 30, 2016, $4
million at Corporate relating to miscellaneous assets. During the three
and nine months ended September 30, 2015, the Company recognized asset
impairments of $7 million and $8 million, respectively, which consisted
of $5 million and $6 million, respectively, at Corporate primarily
related to certain internally developed software, and $1 million for
both the three and nine months ended September 30, 2015 at both the
Turner and Warner Bros. segments relating to miscellaneous assets.

Gain (Loss) on Operating Assets, Net

For the three months ended September 30, 2016, the Company recognized
$12 million of loss on operating assets, primarily relating to the
pending disposition of a business at the Turner segment. For the nine
months ended September 30, 2016, the Company recognized $77 million of
net gain on operating assets, consisting of $92 million of gains at the
Warner Bros. segment, principally relating to the gain on the sale of
Flixsters net assets to Fandango Media, LLC, a subsidiary of
NBCUniversal Media LLC, and $15 million of losses at the Turner segment,
principally relating to the pending disposition of a business. For the
three and nine months ended September 30, 2015, the Company recognized
$2 million of net gains on operating assets at the Turner segment,
reflecting a $3 million gain upon its acquisition of the controlling
interest of iStreamPlanet and a $1 million loss on the sale of a
business. For the nine months ended September 30, 2015, the Company also
recognized $2 million of net losses at the Turner segment related to the
remeasurement of certain previously held investments upon the Turner
segments acquisition of controlling interests in those investments as
well as a $1 million loss at the Warner Bros. segment.

Venezuelan Foreign Currency Loss

For the nine months ended September 30, 2015, the Company recognized a
pretax foreign exchange loss of $22 million, consisting of $17 million
at the Turner segment and $5 million at the Warner Bros. segment,
related to a change in the foreign currency exchange rate used by the
Company for remeasuring its Venezuelan net monetary assets from the
SICAD 2 rate to the Simadi rate. The Venezuelan foreign currency loss is
included in Selling, general and administrative expenses in the
accompanying Consolidated Statement of Operations.

Other

For the three and nine months ended September 30, 2016, Other includes
external costs related to mergers, acquisitions or dispositions of $4
million and $9 million, respectively, consisting of $3 million and $4
million, respectively, at the Turner segment and $1 million and $2
million, respectively, at the Warner Bros. segment and, for the nine
months ended September 30, 2016, $3 million at Corporate. For the three
and nine months ended September 30, 2016, Other also includes $10
million of pension settlement charges at Corporate, and for the nine
months ended September 30, 2016, $9 million of expenses at the Home Box
Office segment related to Home Box Offices withdrawal from a
multiemployer benefit plan. For the three and nine months ended
September 30, 2015, Other reflects external costs related to mergers,
acquisitions or dispositions of $3 million and $8 million, respectively,
consisting of $0 and $1 million, respectively, at the Turner segment, $2
million and $5 million, respectively, at the Warner Bros. segment and $1
million and $2 million, respectively, at Corporate. External costs
related to mergers, acquisitions or dispositions, the pension settlement
charges and the accrued pension withdrawal expenses are included in
Selling, general and administrative expenses in the accompanying
Consolidated Statement of Operations.

Investment Gains (Losses), Net

For the three and nine months ended September 30, 2016, the Company
recognized $57 million and $93 million, respectively, of investment
gains, net, consisting of a $41 million gain for both periods associated
with an agreement to dissolve a Home Box Office joint venture in the
Netherlands, $18 million of gains and $44 million of losses,
respectively, relating to fair value adjustments on warrants to purchase
common stock of Central European Media Enterprises Ltd. ("CME") held by
the Company, $2 million of miscellaneous investment losses and $1
million of miscellaneous investment gains, respectively, and, for the
nine months ended September 30, 2016, a $95 million gain in connection
with financing transactions of CME. For the three and nine months ended
September 30, 2015, the Company recognized $15 million of net investment
gains and $70 million of net investment losses, respectively, consisting
of $5 million and $110 million, respectively, of losses related to fair
value adjustments on warrants to purchase common stock of CME held by
the Company and $20 million and $40 million, respectively, of net
miscellaneous investment gains. Investment losses, net are included in
Other loss, net in the accompanying Consolidated Statement of Operations.

Amounts Related to the Separation of Time Warner Cable Inc.

For the three and nine months ended September 30, 2015, the Company
recognized $4 million of losses related to payments made to Time Warner
Cable Inc. ("TWC") in accordance with a tax sharing agreement with TWC
and, for the nine months ended September 30, 2015, the Company also
recognized $4 million of losses related to changes in the value of a TWC
tax indemnification receivable. These amounts have been reflected in
Other loss, net in the accompanying Consolidated Statement of Operations.

Amounts Related to the Disposition of Warner Music Group

For the three and nine months ended September 30, 2016, the Company
recognized $3 million and $4 million, respectively, of losses related to
the disposition of WMG, primarily related to a legal settlement. These
amounts have been reflected in Other loss, net in the accompanying
Consolidated Statement of Operations.

Amounts Related to the Separation of Time Inc.

The Company recognized expenses of $5 million and $13 million for the
three and nine months ended September 30, 2016, respectively, and $2
million and $7 million for the three and nine months ended September 30,
2015, respectively, primarily reflecting pension and other retirement
benefit costs related to employees and former employees of Time Inc.
These amounts have been reflected in Other loss, net in the accompanying
Consolidated Statement of Operations.

Premiums Paid and Costs Incurred on Debt Redemption

For the three and nine months ended September 30, 2015, the Company
recognized $21 million of premiums paid and costs incurred principally
on the redemption of $313 million aggregate principal amount of its
5.875% Notes due 2016. For the nine months ended September 30, 2015, the
Company also recognized $51 million of premiums paid and costs incurred
on the purchase of $687 million aggregate principal amount of its 5.875%
Notes due 2016 through a tender offer. The premiums paid and costs
incurred on the debt redemptions were recorded in Other loss, net in the
accompanying Consolidated Statement of Operations.

Items Affecting Comparability Relating to Equity Method Investments

For the three and nine months ended September 30, 2016, the Company
recognized $1 million and $11 million of income, respectively, primarily
related to net investment gains recorded by equity method investees and,
for the nine months ended September 30, 2016, $150 million of losses
related to the financing transactions with CME in 2016. For the three
and nine months ended September 30, 2015, the Company recognized a $3
million asset impairment recorded by an equity method investee for both
periods and $2 million of income and $1 million of losses, respectively,
from discontinued operations recorded by an equity method investee. In
addition, for the three months ended September 30, 2015, the Company
recognized an $18 million reversal of an accrual related to government
investigations recorded by an equity method investee. These amounts have
been reflected in Other loss, net in the accompanying Consolidated
Statement of Operations.

Income Tax Impact

The income tax impact reflects the estimated tax provision or tax
benefit associated with each item affecting comparability using the
effective tax rate for the item. The estimated tax provision or tax
benefit can vary based on certain factors, including the taxability or
deductibility of the item and the applicable tax jurisdiction for the
item. Also included in the income tax impact for the three and nine
months ended September 30, 2016 is a tax benefit of approximately $19
million related to the settlement of Netherlands tax liabilities
associated with the repayment of the CMEs Senior Secured Notes due 2017
and the term loan Time Warner provided to CME in 2014.